Monday, May 25, 2009

If things are so bad...

...why are things so good?

I can't explain it. I'm down 20% in sales this year, which is substantial. But I'm not feeling it.

In fact, for the very first time in my entire fricken career, I'm able to order everything I want, pay the bills on time, and still have a little left over.

I can order the new stuff, I can reorder the evergreen's, I can indulge some of my whims, I can incrementally improve my stock, and I can buy tons of "liquidation" product.

That last category is the key, I think. This is pretty good stuff that may be past its prime selling period -- but still very salable to me.

But still, how can this state of blissful affairs be possible? (Knock Wood.)

I can think of four good reasons.

1.) Inventory has finally reached combustion point. That is, I have so much stock and so much inventory that the true 'long-tail' benefits come into play. Someone buys SOMETHING every day that I don't expect.

2.) I'm working the store all by myself. Saved a bunch of money by this, and it hasn't been all that hard. Frankly, I like being in total charge without having to explain things. By taking every possible Holiday (I'll be off today, Memorial Day, for instance) and getting the occasional break from Linda, and by taking a laid-back day to day approach, I don't seem to be wearing down.

Plus, I can put the full weight of experience and knowledge into play by being here. I can be much more effective in ordering. Sometimes, like last Saturday, I can get on a roll, sell the hell out of things, and have my best day of the year.

3.) Access to 'sale' product. I'm jumping on every opportunity. I'm buying a year or two worth of stock at a time. I'm filling every nook and cranny of the store.

4.) I'm no longer trying to build entire product lines. I've reached my limit. I couldn't fit another product line into the store if I wanted to, and I suspect it wouldn't be very effective, or would detract from what I'm already selling.

Making incremental improvements to the stock is a very different kettle of fish from trying to build a whole new inventory.

New books and boardgames are currently double what my original goal was -- and represent 25% of my sales. 25% Stuff that wasn't even in the store 3 years ago. Feeling like I made some good planning decisions.



So, despite the down economy, I'm feeling like the store is performing better than it ever has before.

Knock wood. Knock wood.

1 comment:

Anonymous said...

"If things are so bad...why are things so good?"

Well, it sounds like: (a) you have a Ph.D. in small business management by now, (b) you know your own weaknesses, (c) you've had some luck in that your location has become more desirable over time. Congratulate yourself and don't forget to take some time off as well, Duncan.